Dear Amit,
Gratuity act says that in the last year of service if the employee has worked for more than 6 months then it will be treated as one full year. Its clear that 7 months has 210 days. So, in his last year he is not working for 240 days but he will be given gratuity for that year.
In calculation of gratuity, the formulais 15 days average salary for every completed year of service.
Moreover, "completed year of service" means continuous service year of one year.
Hence, in your case, If in the last year he has worked for more that 6 months he will get gratuity for same, but for the penultimate year it has to be seen with reference to section 2D of the act whether the employee has worked for 240 days or not.
If he has worked for more than 240 days it will be termed as completed year of service else not.
Comments from others will be appriciated.
Regards,
Nilendra
Gratuity act says that in the last year of service if the employee has worked for more than 6 months then it will be treated as one full year. Its clear that 7 months has 210 days. So, in his last year he is not working for 240 days but he will be given gratuity for that year.
In calculation of gratuity, the formulais 15 days average salary for every completed year of service.
Moreover, "completed year of service" means continuous service year of one year.
Hence, in your case, If in the last year he has worked for more that 6 months he will get gratuity for same, but for the penultimate year it has to be seen with reference to section 2D of the act whether the employee has worked for 240 days or not.
If he has worked for more than 240 days it will be termed as completed year of service else not.
Comments from others will be appriciated.
Regards,
Nilendra